Yangarra Resources Ltd T.YGR

80 Million

[Helloworld]

Does anyone know whether this number is set in stone from bankers, etc before a buyback can begin. 

Currently trading at a Mcap of 1x ffo seems to suggest a buyback would provide good value to suffering shareholders.

[kavern23]

Well the debt faculty is going down to 120m...it is hard to raise money in junior energy space right now...doesn't 80m target sound prudent move? I would guess at 100m they could start a buyback if commodity outlook was okay. Best hope is for YGR to keep drilling and increasing proved developed reserve number. Need the drilling rig working and not sitting to do this.

[cfliesser]

From what I heard from management it is set in stone.

[pennydredful]

by their  bank

[pennydredful]

When   IPO  tapped  BDC   for  a secondary loan  YGR  did  nothing  .  Now   BDC  is   in  IPOs primary  syndicate of lenders.  None   of them   are  going to walk  with   the government owned lender in position.   

[margaritaman]

I would expect that to be a covenant disclosed in the financials. 

[margaritaman]

No idea if this is set in stone or not and anyone on this board that suggests they know is, well how to they say it "misguided". I believe they stay the course and get to $80M then look at an NCIB or divi. Could be a few painful quarters if your looking for a quick buck. Bought into YGR as a low cost producer that could grow production through the drill bit while lowering debt and

[cfliesser]

Just saying what management told me when I emailed them. They said their priority was getting to 80M before anything else. I personally think that NCIB at current valuation is better value than debt reduction. But it appears that is not possible.